Closing & Negotiation
Win top candidates by crafting compelling offers and navigating negotiations with confidence.
The Close Is Where Deals Are Won or Lost
You've found an amazing candidate. They've passed your interviews. Now comes the critical moment: getting them to say yes. Startups compete against bigger companies, so you need to be strategic about how you close.
"The best candidates have options. Your job is to help them see why your option is the best."
Reference Checks
Validating before you commit
Reference Best Practices
Ask for 3+ references
At least one recent manager, one peer, one person who reported to them (if applicable).
Back-channel when possible
References the candidate provides will always be positive. Find connections who worked with them.
Ask specific questions
Not "What do you think of Sarah?" but "Would you hire Sarah again? In what role?"
Key Reference Questions
"On a scale of 1-10, how would you rate [Name]? Why not a 10?"
"What would you say are their biggest development areas?"
"Would you work with them again? In what capacity?"
"How did they handle [situation you're concerned about]?"
Crafting Compelling Offers
Building offers that candidates can't refuse
Offer Letter Components
Make Offers Verbally First
Never send a written offer before discussing it live. Call the candidate, share the excitement, walk through the offer, and gauge their reaction. This lets you address concerns before they become objections.
Startup Compensation Strategy
Competing when you can't match big tech salaries
The Total Comp Story
Startups win on total opportunity, not just salary. Help candidates see the full picture:
Cash
Aim for 75-90% of market rate. Be transparent about trade-offs.
Equity
Early employees: 0.1-2%+. Show potential value at different exit scenarios.
Growth
Career acceleration, learning, title/responsibility faster than big co.
Impact
Direct impact on company success. Not a cog in a machine.
Equity Guidelines by Stage
| Stage | Engineers | Leads/Mgrs | Executives |
|---|---|---|---|
| Seed (1-10) | 0.5-2% | 1-3% | 2-5% |
| Series A (10-30) | 0.1-0.5% | 0.25-1% | 1-2% |
| Series B+ (30+) | 0.02-0.1% | 0.1-0.25% | 0.5-1% |
Handling Negotiations
Navigating the back and forth
Negotiation Principles
Start with your best offer
Don't lowball hoping they won't negotiate. Give them your best offer upfront, with small room for movement.
Understand their priorities
Some care most about salary, others about equity, title, or flexibility. Ask what matters most.
Be creative with levers
If you can't move on salary, can you offer signing bonus, more equity, title bump, or accelerated review?
Set deadlines
Give 3-5 business days to decide. Don't let negotiations drag on—urgency helps close.
Negotiation Levers
Signing Bonus
One-time cost, bridges salary gap
Equity Refresh
More equity vs. more cash
Title Bump
Costs nothing, means a lot
Earlier Review
6-month review vs. 12
Remote/Flex
Work arrangement flexibility
Start Date
Time to wrap up or vacation
Competing Against Big Tech
When they have a Google/Meta offer
Your Startup Advantages
What You Offer
- • Direct impact on company success
- • Faster career growth
- • Meaningful equity upside
- • Work directly with founders
- • Less bureaucracy
- • More learning opportunities
- • Build something from scratch
Don't Try to Compete On
- • Pure cash compensation
- • Brand name recognition
- • Job stability/security
- • Established benefits programs
- • Work-life balance (unless true)
The Conversation Script
"I know [BigCo] can pay more in cash. But let's talk about what you'd actually be doing there vs. here. At [BigCo], you'd be one of 50,000 engineers. Here, you'd be one of 10. You'd own [specific area], work directly with me, and if we hit our milestones, your equity could be worth [X]. What matters more to you at this stage of your career?"
Closing Techniques
Getting to "yes"
The Close Playbook
Build excitement throughout
Don't save selling for the close. Every interview should leave them more excited.
Have the team reach out
After making the offer, have future teammates text/email their excitement to work together.
Address concerns directly
Ask "What's holding you back?" and address each concern head-on.
Create appropriate urgency
"We're really excited about you. We need a decision by Friday so we can kick off [X]."
When They Decline
Always part on good terms. Ask what drove their decision. Thank them genuinely. Many candidates circle back later—companies change, circumstances change. Keep the door open.
Practice Exercise
Prepare your closing strategy:
- 1Create a template offer letter with all components
- 2Build an equity calculator showing value at different exit scenarios
- 3List your "startup advantages" talking points
- 4Define your negotiation ranges and available levers
- 5Create reference check questions mapped to your concerns